Lendlease banks £113m profit from 'unviable' joint venture with Southwark

Council's share of the bumper profit from its regeneration partner is a pitiful £12m

Figures published in Lendlease’s 2016 half year financial statement and 2015 portfolio report show that it made a handsome £113m profit from its One the Elephant joint venture development with the Council. Southwark received just a £12.2m share of this. The Council had previously received a £6.6m sum for its land interest and £3.5m towards the £20m cost of the new leisure centre, both included as scheme costs. The £3.5m was in lieu of the scheme providing any affordable housing, which Lendlease claimed would render it unviable.

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Traders Betrayed

Southwark's forgotten promises to E&C shopping centre traders

As residents of the Heygate estate discovered, early regeneration promises made to those pushed aside are seldom kept, but the scale of the unfulfilled committments made by Southwark to the independent small traders at the Elephant & Castle shopping centre puts the Heygate into the shade. The committments are made in a Business Continuity Charter, drawn up by the head of regeneration and recommended to Southwark’s Executive Committee in 2007.

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Get Living London - get lost HMRC

How Delancey continues to exploit the Elephant and avoid the taxman

Our last blog reported how Delancey has shown great efficiency in its Elephant One development. Delancey and its development partner bought the site for £8m and then increased the purchase price to £18m by flipping it between companies. This was then used to help avoid £58.9m of planning contributions, including affordable housing. Along the way it gained half an acre of public land with which it was to provide a market square, but subsequently ditched the market.

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